What's a Compulsory Counterclaim?
A compulsory counterclaim is one which, being cognizable by the regular courts of justice, arises out of or is connected with the transaction or occurrence constituting the subject matter of the opposing party‘s claim and does not require for its adjudication the presence of third parties of whom the court cannot acquire jurisdiction. Such a counterclaim must be within the jurisdiction of the court, both as to the amount and the nature thereof, except that in an original action before the RTC, the counterclaim may be considered compulsory regardless of the amount (Sec. 7, Rule 6).
ELEMENTS: A counterclaim is compulsory where:
[1] It arises out of, or is necessarily connected with the transaction or occurrence that is the subject matter of the opposing party‘s claim;
[2] It does not require jurisdiction over third parties for adjudication; and
[3] The trial court has jurisdiction to entertain the claim.
TESTS: The tests to determine whether or not a counterclaim is compulsory are:
[1] Are the issues of fact or law raised by the counterclaim largely the same?
[2] Would res judicata bar a subsequent suit on defendant‘s claims absent the compulsory counterclaim rule?
[3] Will substantially the same evidence support or refute plaintiff‘s claim as well as the defendant‘s counterclaim? and
[4] Is there any logical relation between the claim and the counterclaim? (Financial Building Corp. vs. Forbes Park Assn. Inc.).
ELEMENTS: A counterclaim is compulsory where:
[1] It arises out of, or is necessarily connected with the transaction or occurrence that is the subject matter of the opposing party‘s claim;
[2] It does not require jurisdiction over third parties for adjudication; and
[3] The trial court has jurisdiction to entertain the claim.
TESTS: The tests to determine whether or not a counterclaim is compulsory are:
[1] Are the issues of fact or law raised by the counterclaim largely the same?
[2] Would res judicata bar a subsequent suit on defendant‘s claims absent the compulsory counterclaim rule?
[3] Will substantially the same evidence support or refute plaintiff‘s claim as well as the defendant‘s counterclaim? and
[4] Is there any logical relation between the claim and the counterclaim? (Financial Building Corp. vs. Forbes Park Assn. Inc.).
